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AMSC shaves 30% of global workforce

Posted: 15 Aug 2011 ?? ?Print Version ?Bookmark and Share

Keywords:energy? restructuring? job cuts?

American Superconductor Corp. (AMSC) is cutting 30 percent or around 150 employees of its global workforce. The energy technology company is shaving off jobs to align with the company's costs with its anticipated revenue.

AMSC said it expects to take a sales hit because its largest customer, Sinovel Wind Group Co. Ltd, announced it expects to report a significant net loss on revenues of less than $10 million for the fiscal quarter ended June 30.

AMSC said the job cuts are part of a restructuring that will save the company about $30 million per year. After completing the job cuts, AMSC expects to employ about 600 people worldwide. The company said it expects to incur restructuring charges of $3 million to $4 million for severance and related expenses in the quarter ending Sept. 30.

"These workforce reductions are necessary to maintain the health of the business in the wake of our business and contractual issues with Sinovel," said AMSC president and CEO Daniel McGahn, in a statement. "Expenses have been reduced in virtually all departments, levels and major geographies, but we have focused on limiting the impact on customer-facing and research and development functions, which are integral to our growth and diversification initiatives."

ASMC said it also plans to submit to the Nasdaq stock market a plan to regain compliance with the market's rules. The company said it continues to work on restated financial statements for the fiscal quarters ended Sept. 30, 2010, Dec. 31, 2010, and June 30, 2011 and the fiscal year ended on March 31, 2011.

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